Creating Pro Forma Financial Statements
The goal of financial planning is to understand and project your financial future. Financial projections are used to evaluate and forecast business plans, to estimate future financing needs, and to establish internal operating budgets. Creating pro forma financial statements is a standard way to forecast a company's financial future. (A pro forma is simply a projection. A pro forma balance sheet, for example, projects assets and liabilities at the end of some future period.)
Pro forma statements build on the financial tools and concepts you've already learned about, such as income statements, balance sheets, and cash flow analysis. There are many approaches to developing pro forma statements, ranging from ...
Get Business Analysis with Microsoft® Excel, Second Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
